Critical Failure Drivers in International Water PPP Projects

Abstract

The public-private partnership (PPP) scheme has been applied for many years as an effective approach in improving water infrastructure and services. However, the failure of many water PPP projects is eroding public confidence in this approach. This study first thoroughly examined 35 water PPP projects that had failed in different parts of the world and, consequently, identified 60 failure drivers, classifying them into three categories (feasibility and procurement, construction and operations, and sociopolitical and external). A questionnaire survey of international experts was then conducted for the purpose of evaluating the relative significance of these failure drivers. The top failure drivers in the different stages of the PPP life cycle and those associated with sociopolitical and external aspects were examined and discussed. Furthermore, key failure drivers that could possibly lead to different types of failure were identified. The outputs of this study can facilitate stakeholders in formulating better overall strategies and specific preventive and remedial measures toward successful water PPPs in the future.